KAUAI ISLAND UTILITY COOPERATIVE KIUC Tariff No. 1 Lihue, Kauai, Hawaii Original Sheet 26 RULE NO. 8 RENDERING AND PAYMENT OF BILLS

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1 Lihue, Kauai, Hawaii Original Sheet 26 RULE NO. 8 A. RENDERING OF BILLS 1. Billing Period Bills for electric service shall be rendered monthly. 2. Metered Service Bills for metered service will be based on meter registration. Meters will be read as required for the preparation of regular bills, opening bills and closing bills. It may not be possible always to read meters on the same day of the month, and should a monthly billing period contain less than 27 days or more than 33 days, a pro rata adjustment in the bill will be made. 3. Estimated Bills The Company may render bills on an estimated basis when the Company is unable to read meters or when requested by the customer. As nearly as practicable, the Company shall avoid sending a customer two successive estimated bills, unless requested in writing by the customer or due to disasters or emergencies. 4. Pro Rata Adjustment Except as provided below, all bills for electric service rendered for periods of less than 27 days or more than 33 days on a monthly billing period will be computed in accordance with the applicable schedule, but the size of the energy blocks, and the amount of the capacity demand, or minimum charge, specified therein, will be prorated on the basis of the ratio of the number of days in the period to the number of days in a monthly period, which for this purpose shall be 30 days. When the total period of service is less than 34 days, no proration will be made, and no bill for such a service period shall be less than the specified monthly capacity, demand, or minimum charge, except, when temporary service is furnished and the customer has paid the estimated cost of installing and removing the service facilities, proration will be made.

2 Lihue, Kauai, Hawaii Original Sheet 27 B. READING OF SEPARATE METERS NOT COMBINED For the purpose of making charges and billing, each meter at the customer's premises will be considered separately and the readings of two or more meters will not be combined, except where the Company, for engineering and operating reasons, installs more than one meter. C. PAYMENT OF BILLS AND CHARGES 1. All bills are due and payable on the date of presentation, and payment shall be made at a Company's business office, or by mail to the Company's business offices, or to an authorized representative or agent. 2. Charges for connection or reconnection of service, payments for deposits, or reinstatement of deposits as required by these rules shall be paid before service will be connected or reconnected. D. FIELD COLLECTION CHARGE 1. If a Company representative goes to the customer's premises for purposes of servicing a disconnect order, and the customer then and there tenders payment in full of the bill to prevent disconnection, the service will not be disconnected. 2. The Company's representative will accept full payment of the amount on the disconnection notice from the customer and will give the customer a receipt of all payments made, but will not make changes or enter into any agreements with the customer. The Company's representative will bring either a copy of the customer's bill or disconnection notice showing the amount outstanding, or all the information contained therein. 3. If a Company representative goes to the customer's premises for the purpose of servicing a disconnect order, a $20 field collection charge will be assessed the customer. The field collection charge shall not be considered part of the amount due at the time of collection, but may be added to the subsequent bill if not paid at that time.

3 Lihue, Kauai, Hawaii Second Revised Sheet 28 Cancels First Revised Sheet 28 E. RETURNED PAYMENT CHARGE The Company may charge a fee of $25.00 to the customer for each instance where the customer tenders payment for any service provided pursuant to this Tariff which is returned or is not honored by the financial institution on which it is issued. A customer who tenders payment for any service provided pursuant to this Tariff which is returned or is not honored by the financial institution on which it is issued shall in no way be relieved of the obligation to render payment to the Company under the original terms of the bill nor defer the Company's provision for termination of service for nonpayment of bills as provided in Rule No. 7. F. APARTMENT HOUSE COLLECTION ARRANGEMENT Any apartment owner having title to three or more apartments at one location, each apartment being separately metered and billed by the Company on Residential Rate Schedule may elect to accept a Commission of ten per cent (10%) of the amount of the bills rendered for such apartments not to exceed $5.00 per month for each apartment upon entering into a collection arrangement with the Company under the following terms and conditions. 1. All accounts shall be kept in the name of the apartment house owner who shall assume the responsibility for the payment of all bills before they become past due. 2. All accounts shall remain active at all times and, though vacant, shall be subject to the minimum charge applicable. 3. Failure to comply with 1 & 2 above shall terminate the Apartment House Agreement. 4. The Company will render individual bills for each apartment on a regular billing period basis and will also furnish a statement showing gross and net billings. Issued: May 2, 2016 Effective: May 2, 2016 By: David J. Bissell, President Decision and Order No and Chief Executive Officer

4 Lihue, Kauai, Hawaii Original Sheet Provision of this section applies to all existing Apartment House Agreements. No new Agreements will be accepted as of the effective date of the D&O in Docket No (January 1, 1994). G. MASTER METERING Metering of electric service for new buildings for which building permits are obtained after December 31, 1980 shall comply with the following standards: 1. Service to single family residential units shall be supplied through individually-metered service for each unit from the Company. a. This requirement applies whether the unit is owner-occupied or rented, except where prohibited by local code or ordinance. 2. Master metering service for apartments, condominiums and multi-unit buildings containing residential units may be utilized when an individual occupant does not control a substantial portion of the energy such as for water heating or air conditioning or if such service will tend to encourage conservation or the efficient use of energy. a. The determination of master metering for apartments, condominiums, and multi-unit buildings shall be made by the Company. (1) In the event of a dispute, a person may make application to the Commission for modification or exemption by furnishing the facts and circumstances to support the petition; and (2) The Company shall also join in the petition either in support of or opposition thereto with reasons and explanations for its position. 3. In commercial and industrial buildings, where the individual tenant uses a significant amount of electricity and controls a major portion of its use, individually metered service from the Company shall be utilized to the extent practicable.

5 Lihue, Kauai, Hawaii Original Sheet 30 a. Master metering may be utilized when the individual occupant meets the conditions of subsection 2. above; and b. Determination of master metering and disputes, modification and exemptions shall be in accordance with subsection 2., paragraph (1.) above.